The Libor (London Interbank Offered Rate) benchmark, the official interest rate in which leading banks borrows funds from other banks in the market, is expected to cease by the end of 2021.

The FCA has committed to allowing usage and publishing of the rate up until then. However, beyond 2021 the use of Libor is likely to be rapidly discontinued. Since the financial crisis, the volume of interbank lending has declined dramatically which has led to the underlying market (Libor) no longer being as widely used and reliably calculated. Furthermore, the scandal surrounding the benchmark over rate manipulation has led to distrust about its reliability and eventually resulted in regulator

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